Soybean Oil Sets Life-of-Contract Highs Ahead of USDA Report

Soybean Oil Sets Life-of-Contract Highs Ahead of USDA Report

Soybean Oil Sets Life-of-Contract Highs Ahead of USDA Report

Vegetable oil futures rallied on Monday as prices in the oilseeds complex moved higher. Overnight, concerns about a decline in palm oil supplies in January due to disruptions in harvesting due to excessive rainfall and rising optimism about exports in February drove buying in the palm oil market. The strength in palm oil combined with a sharp rally in soybean futures to lift soybean oil futures to life-of-contract highs and pushed the benchmark contract above the psychologically important 45-cent level.

Nearby soybean oil contracts rose about two percent (March contract +97 basis points per pound), but bull spreading by funds limited gains in the back end of the curve (December contract +54 basis points). The move higher triggered a buy signal from the MACD indicator, potentially indicating a new leg in the bullish…

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Runner market commentary
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